Council of State Ruling Reshapes SGK Records

Turkey’s highest administrative court has triggered a major shift in how employment records are presented in official digital documents. Following a landmark ruling by the Council of State (Danıştay) dated October 14, 2024, the Social Security Institution (SGK) has removed job termination reasons and exit codes from e-Devlet service records that are commonly shared with third parties. The decision is being widely interpreted as a significant step toward protecting personal data and safeguarding the constitutional right to work.

This regulatory change directly affects SGK Registration and Service Statements as well as Workplace Title Lists obtained through e-Devlet. While the data still exists within SGK systems, it will no longer appear on documents downloaded or submitted to employers, banks, or other institutions. The move addresses long-standing concerns that job exit codes—often based solely on employer declarations—could unfairly damage an individual’s career prospects.

Why the Council of State Intervened

At the heart of the ruling is the Council of State’s evaluation of dismissal codes such as those citing “violation of moral and good faith rules.” The court found that many of these codes are entered unilaterally by employers and recorded in official systems without any prior judicial review. According to the court, this practice creates a serious imbalance between employer authority and employee rights.

One of the most critical findings of the ruling is the lack of judicial oversight. Employment termination codes are registered immediately, even though they may later be disputed or overturned in court. This means unverified allegations can become part of an individual’s official employment history, accessible through state-issued documents.

The court also highlighted concerns under the Personal Data Protection Law (KVKK). Job exit reasons can constitute sensitive personal data, especially when they imply misconduct or ethical violations. Recording and displaying such information without proven legal grounds was deemed incompatible with data protection principles.

Perhaps most importantly, the ruling emphasized the right to work. The Council of State concluded that displaying unproven termination reasons on official documents could unfairly hinder individuals from securing new employment. Employers reviewing service records might draw negative conclusions based on codes that have never been validated by an independent authority.

How the New System Works in Practice

In line with the court’s decision, SGK has redesigned how information is displayed on e-Devlet-generated documents. When individuals download their SGK Registration and Service Statement or Workplace Title List to submit to third parties, job exit codes and explanations will no longer be visible. This ensures that documents used in job applications, loan requests, or official procedures do not contain potentially damaging annotations.

However, the information has not been completely erased from the system. Individuals can still view their own job exit codes when logging into e-Devlet for personal reference. The key distinction is that this data remains private and non-transferable through standard service records.

This approach reflects a balance between administrative recordkeeping and personal rights. SGK retains the information for internal and legal purposes, while preventing its automatic disclosure in situations where it could be misused or misinterpreted.

A Key Exception Employers Should Know

Despite the broad scope of the change, there is an important exception that continues to affect hiring processes. If an employer directly requests an “Employment Termination Notice” (İşten Ayrılış Bildirgesi) from a job applicant, the document will still display the termination reason and corresponding code. This means that while general service records are now neutralized, employers may still access exit details through alternative documentation—provided they explicitly request it from the candidate.

This exception keeps alive an ongoing debate about transparency versus privacy in recruitment. While the ruling significantly reduces the risks of indirect discrimination, it does not entirely eliminate employers’ access to termination data.

Broader Implications for Employees and Employers

The Council of State’s decision is widely regarded as a precedent-setting move that strengthens employee protections in the digital age. By limiting the visibility of unverified employment data, the ruling reinforces the principles of data minimization, proportionality, and fairness embedded in both constitutional law and KVKK.

For employees, the change offers a clearer path forward after job loss, especially in disputed dismissals. For employers, it signals the need for greater care and legal rigor when declaring termination reasons, knowing that such data is increasingly scrutinized by courts and regulators.